Job growth is strong, unemployment is steady, and workers are optimistic about finding new jobs. These trends indicate that we’ve entered a tight labor market and employers are feeling the pinch. Companies looking for cost effective ways to bolster their recruitment efforts should consider these third-party internal recruitment service offerings—Direct Hire and Recruitment Process Outsourcing (RPO).

Employers partner with several staffing firms to ensure timely fulfillment. Thus, staffing firms present themselves to candidates as a consultant to their client’s company.

Because direct hire services are focused mainly on filling a specific position, companies focus on metrics like candidate quality and time-to-present candidates.

Lastly, staffing firms are only paid a fee if the company hires their candidate. The fee is usually a percentage of the employee’s annual salary.

Direct hire services are ideal for companies with strong internal recruitment teams that simply require support with fulfilling open positions.

Recruitment Process Outsourcing (RPO)

RPO is the outsourcing of a company’s internal recruitment process. Services include some or all of the following: creating job descriptions, developing sourcing strategies, managing resumes, screening and testing candidates, coordinating interviews, negotiating job offers, and supporting on-boarding activities.

RPO providers dedicate recruiters to each client. Recruiters presents themselves to candidates as a part of client’s company. Thus, companies select a single RPO provider to create efficient hiring processes and develop their employment brand.

RPO providers work under Service Level Agreements, and track metrics like costs per hire, interview-to-offer ratio, and retention.

Lastly, RPO providers are typically paid a flat monthly management fee, regardless of the number of positions filled during the month.

RPO services are ideal for companies with limited or no internal recruitment teams.

Identifying the Right Solution

Reach out to your staffing provider to discuss the best solution for your company. After all, as the labor market continues to contract, only employers with strong hiring frameworks will be ready to attract top talent.

Our name means what it says. About Talent provides companies with a highly productive workforce that seamlessly blends into their unique culture and is fully committed to achieving their business objectives. It’s about planning, identifying, acquiring and managing a talented workforce. It’s all About Talent.

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